Solana and Ethereum- Is Trump’s Crypto Reserve Plan Feasible? Experts Weigh In
Solana and Ethereum– On Sunday, President Donald Trump made waves in the financial world with an unexpected announcement regarding a U.S. strategic crypto reserve. The reserve, which would include Bitcoin, Ethereum, XRP, Solana, and Cardano, has left analysts scratching their heads.
In a Monday note, analysts from Bernstein expressed skepticism about how feasible it would be for the U.S. government to include these assets in a national reserve. While Bitcoin is seen as “digital gold,” Ethereum and Solana’s inclusion raised eyebrows. As analysts Gautam Chhugani, Mahika Sapra, and Sanskar Chindalia wrote, “ETH and SOL are the two most-used blockchain networks, and holding their native assets supports the growth of the industry—but the rationale for a sovereign to hold it in reserve is unclear.”
Trump’s Motivation and the Uncertain Path Ahead
Trump’s push for a crypto reserve aligns with his desire to “elevate this critical industry after years of corrupt attacks by the Biden administration.” However, despite his plans, analysts questioned whether such an initiative could be implemented through an executive order alone. Convincing Congress to include altcoins like Solana and Ethereum in the reserve would be a significant challenge.
In their report, Bernstein analysts suggested that while the U.S. could likely convince Congress that Bitcoin should be treated as the new digital gold, acquiring other blockchain assets like Ethereum and Solana through government funds is more complex.
Immediate Market Reaction to Trump’s Announcement
Trump’s announcement caused a sharp rise in Bitcoin prices, nearly reaching $95,000 on Sunday. However, these gains were quickly lost on Monday, with Bitcoin dipping to nearly $85,000 in afternoon trading.
The announcement came during a period of market volatility, driven by concerns over inflation, trade wars, and broader economic uncertainties. Bitcoin, now far from its all-time high of $108,000 set in January, is still navigating a turbulent market environment.
While the concept of a U.S. crypto reserve has intrigued many, the path forward remains unclear, with significant hurdles to overcome before it could become a reality.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
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